Governor Gavin Newsom and state legislative leaders have announced an agreement on a package of immediate actions intended to speed needed relief to individuals, families and businesses suffering significant economic hardship from the COVID-19 recession. A part of this package is bringing California tax law to partial conformity with federal tax policy regarding loans provided by the Paycheck Protection Plan (PPP) – a proposal that will benefit many small and solo medical practices across California.
The new California agreement will allow companies who received a PPP loan to deduct up to $150,000 in expenses paid for by those PPP funds. Under the agreement, all businesses that took out loans of $150,000 or less will be able to maximize their deduction for state purposes. Those that took out higher loans will be subject to a deduction ceiling of $150,000. More...
